Facts of the Case

The assessee, Sh. Sanjay Mittal, filed an appeal before the Income Tax Appellate Tribunal (ITAT) against the order of the CIT(A)/NFAC dated 18.07.2024 for Assessment Year 2018-19. The assessment proceedings were initiated under Section 147 of the Income-tax Act, 1961.

The CIT(A)/NFAC dismissed the assessee’s appeal on the ground that there was a delay of approximately four months in filing the appeal and no sufficient cause was provided for condonation of delay.

Issues Involved

  1. Whether the delay in filing the appeal before CIT(A) should be condoned.
  2. Whether dismissal of appeal solely on the ground of delay without adjudicating merits is justified.
  3. Whether the matter should be restored for fresh adjudication in the interest of justice.

Petitioner’s Arguments (Assessee)

  • The assessee contended that the delay in filing the appeal was not intentional.
  • It was argued that there could have been a communication gap regarding the assessment order.
  • The assessee sought an opportunity to present the case on merits before the appellate authority.

Respondent’s Arguments (Revenue)

  • The Revenue supported the order of the CIT(A)/NFAC.
  • It was contended that the assessee failed to provide any justifiable explanation for the delay.
  • Hence, the dismissal of the appeal by the CIT(A) was valid.

Court Order / Findings

  • Even if the assessment order was uploaded on the official portal, the possibility of communication gap cannot be ruled out.
  • In the larger interest of justice, the assessee should be given an opportunity to present the case.
  • The matter was restored back to CIT(A)/NFAC for fresh adjudication.

However, the Tribunal imposed a condition:

  • The assessee must properly plead and substantiate the case within three effective opportunities, failing which consequences shall follow.

Accordingly, the appeal was allowed for statistical purposes.

Important Clarification

  • The ITAT did not decide the case on merits.
  • The order strictly relates to procedural justice and condonation of delay.
  • The restoration is conditional, emphasizing timely compliance by the assessee

Sections Involved

  • Section 147 – Income escaping assessment
  • Section 250 – Procedure in appeal (CIT(A

  • Link to download the order -  https://itat.gov.in/public/files/upload/1735801384-Zk4CZx-1-TO.pdf

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